Ghana-based Engineers & Planners Company has joined the takeover tussle between Nordgold and Shandong Gold for Cardinal Resources.
The new entrant has offered to acquire Cardinal for $1.05 cash per share, which represents a 5 per cent premium to Nordgold and Shandong Gold’s current offers of $1.
This values Cardinal at over $564 million based on the number of its ordinary shares on issue.
The offer is conditional upon the approval of at least 50.1 per cent of Cardinal shareholders.
Meanwhile, Cardinal advised its shareholders to refrain from taking action in relation to the bid while it considered the offer.
“Cardinal notes that throughout the first half of 2020, it was engaged in a strategic process and engaged with, and received, a number of early stage proposals from a number of different parties (including, an early stage asset level proposal that was expressed to be subject to contract from Engineers & Planners Co),” Cardinal stated in an ASX announcement.
“Cardinal will provide an update to shareholders as soon as it is able.”
Engineers & Planners said: “The offer represents a compelling opportunity for Cardinal shareholders to realise value of Ghanaian natural resources by a 100 per cent Ghanaian owned entity.”
The company employs 3000 people and is currently contracted at two major gold mines in Ghana.
Cardinal is a West African gold-focussed company with interests in tenements within Ghana, including the Namdini gold project.